Dollar Tree (DLTR, Financial) is set to release its third-quarter earnings report on December 4. Market expectations are for the company to report revenues of $7.45 billion, a 1.9% increase year-over-year, and earnings per share of $1.07, up 10.3%.
The discount retailer is under pressure as Walmart (WMT) continues to capture market share. Walmart's strong third-quarter performance, with a 5.3% increase in U.S. comparable sales, surpasses analyst expectations and poses a competitive threat to Dollar Tree.
Recently, Dollar Tree announced CEO Rick Dreiling's departure, appointing Michael C. Creedon Jr. as interim CEO. This sudden leadership change may impact the company's operations despite reaffirming its guidance.
Store closures, with 600 out of 1,000 planned closures completed, could further affect profits. Additionally, potential tariff hikes by Trump could threaten Dollar Tree's reliance on low-cost imports, echoing the 16% stock decline in 2018.
Wall Street analysts maintain a "hold" rating with an average target price of $81.37, 14% above the current level. Dollar Tree shares have dropped nearly 50% this year.
